The Rise Of The Casino Industry

Posted on May 8, 2012 by Valery

In fact in this article what we’re discussing is more specific than that – this post is about the rise of the online Casino industry, an ethereal economy based in cyberspace which, despite the economic woes of most of the globe for the past four years, has continued to grow in revenue terms.  There’s one exception to that but more of that later.  This industry is one which demonstrates the power of the internet and the power of gambling. Offer potential customers a product which combines both and the results were never in doubt.

Back to the beginning though and it was during the mid-1990s that the infrastructure of the internet became fast and stable enough to enable a few enterprising operators to write software that would link like minded gamblers together.  The additional attraction was the ability play poker, Internet Roulette, blackjack or some other game against (or with) someone on the other side of the world for real money.  If the first online casinos thought that the potential customer base for this new business model was massive, they can only have underestimated it.

online poker table

Online Poker Table

In the next few years, online casinos providing a wide variety of casino games and slot machines sprang up to take advantage of what was clearly massive demand.    These were still the early years of this industry of course and there were many unscrupulous operators looking to take advantage of the opportunities to cheat.  How did a punter know if Blackjack cards were fixed or not?  What about the Roulette wheel?  Some sort of regulation was needed and many countries and territories set up their own regulatory authorities.  Gradually the biggest sites gravitated to these licensed territories and the industry was on it’s way to some sort of legitimacy.

The major setback so far for the relatively new industry has been the decision in the United States to try and legislate against the industry and stop it’s own citizens playing for real money.  Since 2006 the American-facing industry has been decimated and this has removed a massive chunk of revenue from the global market.  Happily, the next year or so should see a return to common sense, Casino Bonus Codes and online gaming in States.

It’s now an industry which is worth billions every year so when you hear of an all-encompassing recession in western economies, don’t forget that there are some industries which are stronger than ever.

 

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There Is Such A Thing As A Free Lunch

Posted on May 8, 2012 by Valery

Some things tend to be set in stone; we know that if someone offers us a deal which is too good to be true it almost certainly is.  However there is some sunshine just glinting through the economic clouds and I’m going to explain today how spending an hour or so at my laptop left me with a profit of nearly £60.  I’m not normally inclined to offer financial tips on this site but just occasionally it seems appropriate.

free lunch

I play a bit of poker online and I also like Online Keno and for that reason I know my way around the vagaries and the pitfalls of online casinos.  The inquisitive gambler can take his or her pick of thousands of websites which offer a bewildering array of incentives the new customer.  The skill is in choosing which is the best one for you.  Occasionally an Online Kasino which catch your eye with a certain deal which looks good.  It was one of these deals which attracted my attention as it offered genuinely free money.  This happens occasionally and the trick is to search for a ‘no deposit casino’.

This means that the casino will give you money just for signing up; obviously you can’t withdraw the money but you can withdraw any profits you gain from wagering this money.  So here’s what happened to me – I gladly accepted my free £10 and headed over to the poker lobby.  These lobbies can take a bit of working out but eventually I found a Texas Hold’em tournament which cost about £3.50 to enter (that’s called the buy-in).  The prize was about £50 plus a bit extra depending on how many others entered.

Of course the happy ending is that I won the tournament.  Using the required ingredients of luck, timing and a tiny amount of skill I gradually saw off the 60 or so other competitors until the final, remaining few when my chip stack was so proportionately large that I couldn’t really lose.  A few minutes later the big prize was mine.  I still use this bankroll to finance the tiny-stakes games and Novomatic Slots I usually play.

Anyway, the lesson is that if you look hard enough and are prepared to invest a little time, you may just get a moderate financial reward for nothing.

 

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U.K. NewBuy Scheme Aims To Help Buyers

Posted on March 13, 2012 by Valery

British flagIt’s hardly a secret that first-time buyers in the U.K. and in many similar countries around the world are having severe problems getting on to the housing ladder.  A lack of affordable mortgage products tied to the requirement for unrealistic deposits had led to a situation in which the average first time buyer is now over 40.  Add a struggling economy and the result is a house building industry in the doldrums.  Nobody wants an unsecured loan when they could have a mortgage.

Some weeks ago we wrote about the Mortgage Indemnity Scheme which aimed to provide selected lenders with the ability to offer 95% mortgages to first time buyers.  The NewBuy scheme actually appears to be pretty similar with a few provisos and this is how it works:

  • The scheme is open to buyers of new builds, whether it’s their first house or not.
  • Three lenders, Barclays, NatWest and Nationwide are on board to offer 95% mortgages up to 95%.
  • The government (via the taxpayer) and the building company will be co-guarantors of part of the loan.  The builders will pay 3.5% of the sale price into an escrow account where it will remain for seven years.  The government will act as a guarantor to another 5.5%.
  • The upper limit for the NewBuy scheme is a mortgage for £500,000.

As with the Mortgage Indemnity Scheme, the idea is to kick start the market for new homes, giving the construction industry a much-needed boost in the process.

David Cameron

PM David Cameron with prospective buyers

Right To Buy

On the same day, Prime Minister David Cameron confirmed that the old system of right-to-buy for council house tenants (social housing tenants) is being ‘re-booted’.  The scheme was essentially a way to provide discounts for those in council-provided housing to buy their own residence.  The government believes that home owners will have more respect for their property and surroundings than those who just rent.

Those wishing to buy will be eligible for a 35% discount after living in the house for five years. Discount cigs provide the same sort of saving. Every additional year will provide an extra 1% discount up to a maximum of £75,000.  A flat/apartment tenant will get 50% discount after five years and then an additional 2% per year.  It will remove the necessity for the less well off to become involved with bad credit loans.

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Should I Overpay My Mortgage With Low Interest Rates?

Posted on February 20, 2012 by Valery

In the easier economic times of pre-2008, before the credit crunch hit most of the western world and things took a financial downturn for many of us, overpaying one’s mortgage was seen as a sensible move.  Let’s check out why that was the case and then have a look at why you should think twice before doing the same thing now.

Mortgage overpayment

Should you overpay?

If you have a basic repayment mortgage of £125,000, perhaps paying an interest rate of 4% or so for the next twenty five years, overpaying is something of a no-brainer.  It’s been shown in many other sources that paying extra, relatively small amounts on top of your standard monthly payments will reduce the life of your mortgage substantially.  In the example above, paying an extra £50 a month and assuming the interest rate remains the same, the mortgage will end 35 months earlier.  Over a twenty five year period, just under three years may not sound much but it equates to a saving of around £25,000.  Beware of any overpayment penalties your lender may charge though.

So the question is: now that interest rates are 0.5% is there any point in overpaying?  Well the answer is: it depends.  You will of course still pay off your mortgage earlier and the money is going in to an investment – your property, but it’s currently an investment which is not appreciating in value.  Perhaps you could find a better, more lucrative investment for your extra monthly cash.  Plenty of governments run tax-free savings schemes which earn money well above the base rate.  Of course paying oextra on your mortgage is also tax free.

In the end it may be the piece of mind of paying off your mortgage quicker which wins the day.  To add to that we would also note that although interest rates are currently low and will be for one, two, maybe three more years, in the end a healthy economy demands a higher interest rate and the money you put into your mortgage now will pay off when the base rates start rising again.  We say overpaying is still the way to go.

 

 

 

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Can A Home Purchase Fit Into Your Budget?

Posted on February 15, 2012 by Valery

The housing market is still a buyer’s market. There’s home’s available at rock bottom prices, and you may be thinking that it’s time for you to become a home owner! The first step is finding out how to budget money for your new home. Through a number of steps you can find out how much home you can afford to still live comfortably and not be crushed by your mortgage.

First, take a look at how much money you make. This should be the after tax amount so you can be sure you won’t be short on funds. Ideally your housing costs should not exceed one third of your income to live at a comfortable rate. This includes the mortgage, taxes, and the insurance. This number should be what you spend per month on your home.

If you’re finding this number hard to achieve then try spending less in other areas or looking for a better deal. There’s plenty of homes you can get for under a hundred thousand dollars now in a lot of areas. You could also save a lot of money by getting a lower interest rate.

Make sure to get more than one quote from banks and insurance companies! The differences in cost can be quite staggering. Just a percentage or two less in interest rates could equal hundreds of dollars back in your pocket every month that would be going to a bank. Try looking at online lenders or local credit unions who may offer you a better rate.

If you’re finding your insurance rate is affecting your ideal one third of income position then talk to your agent about a lower rate. There are lots of things you may not need that you could cut. You could get a higher deductible or cut uneccessary coverage. I save a lot of money by getting rid of replacement value of contents. This basically covers your furniture and such. Most of mine was free so I see no reason to spend hundreds of dollars extra per month to insure it! Other things that effect your insurance premiums include the age of the home, being in a flood zone, proximity to a fire hydrant, hurricane shutters, age of your roof, swimming pools, and whether or not you have a dog!

If you’re having trouble getting a down payment there are many first time home buyer programs that will give you a morgage with as little as 3% down. Buying a home through owner financing is also an option if you have poor credit. If you have a 401k you could also potentially borrow money from that to get your down payment, but watch out for fees. Make sure you know all the rules before betting against your retirement fund!

Need more information on mortgage deals, home ownership, and general finance help? Visit Pennyseeds.com for more great financial assistance articles like this one!

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